Applied Materials Inc. (NASDAQ:AMAT)

The financial data reveals a generally positive trend in profitability and operational earnings over the six-year period inspected. Each key earnings metric demonstrates consistent growth, albeit with some variations in the growth rate.

Net Income

Starting from 3,619 million US dollars in 2020, net income increased significantly to 7,177 million by 2024, showing steady annual growth. However, a slight decline is observed in 2025, where net income decreased to 6,998 million. This suggests a peak in profitability in 2024 followed by a modest reduction.

Earnings Before Tax (EBT)

EBT exhibits a sustained upward trajectory, rising from 4,166 million in 2020 to 9,271 million in 2025. The growth appears relatively steady, with no observed declines, indicating increased pre-tax profitability and possibly improved operational efficiency or reduced non-operating expenses over time.

Earnings Before Interest and Tax (EBIT)

EBIT also shows consistent improvement throughout the period, moving from 4,406 million in 2020 to 9,540 million by 2025. The pattern mirrors that of EBT, signaling steady operational performance and effective cost management impacting operating income positively.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)

EBITDA follows a similar ascending pattern, increasing from 4,782 million in 2020 to 9,975 million in 2025. The continued growth in EBITDA suggests enhanced earnings before non-cash expenses, possibly reflecting greater operational cash flow generation capacity and solid business fundamentals.

Overall, the data indicates consistent and robust growth in profitability with all four earnings measures approximately doubling or more over the time span of six years. The slight drop in net income in the final year warrants attention to factors such as increased expenses, taxation, or non-operational impacts, but the continued rise in EBT and EBIT through 2025 suggests underlying operational strength remains intact.

Enterprise Value (EV)

The enterprise value exhibited notable fluctuations over the analyzed periods. Beginning at approximately $80.4 billion, it increased sharply to nearly $130 billion in the subsequent year. This was followed by a decline to around $91.3 billion, before surging again to roughly $133.4 billion and maintaining a similar level the next year. A significant rise was observed in the latest period, reaching over $203.5 billion, indicating a strong growth in market valuation or increased capital deployment.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)

The EBITDA showed a consistent upward trend throughout the periods under review. Starting from about $4.8 billion, it grew steadily each year, reaching nearly $10 billion by the last period. This steady increase points to improving operational performance and enhanced earnings capacity before accounting for capital structure and non-cash charges.

EV/EBITDA Ratio

The EV/EBITDA ratio demonstrated moderate variability, reflecting changes in both enterprise value and EBITDA over time. Initially, the ratio was around 16.8, slightly increasing to 17.5 in the following year, which suggests a modest expansion in valuation multiples relative to earnings. This ratio then dropped significantly to 11.0, indicating the company was valued more conservatively compared to its earnings at that point. Subsequently, the ratio increased again to approximately 15.8 and 15.3 in the following years, before reaching 20.4 in the most recent period. The rising ratio suggests increasing investor optimism or higher growth expectations, despite the steady growth in EBITDA.